Budget adjustment bill clears second round without private scholarship, extended child care funding

Lawmakers succeeded March 26 in their third attempt to move the main budget adjustment proposal to the final round of debate after removing funding for private school scholarships and expanded eligibility for the state’s Child Care Subsidy program.

LB1071, introduced by Speaker John Arch of La Vista at the request of Gov. Jim Pillen, would provide, change and eliminate provisions related to appropriations for state expenses for the biennium ending June 30, 2027.

After failing twice in recent days to get a vote on the proposal, Appropriations Committee chairperson Elmwood Sen. Robert Clements offered an amendment to remove two provisions that had generated significant opposition.

The amendment would strike $3.65 million in funding for private school scholarships to cover a “gap year” until a federal version of the program takes effect Jan. 1, 2027.

It also would remove funding to support the permanent extension of expanded eligibility for the Child Care Subsidy program, which provides a direct subsidy to providers to cover a portion of child care expenses for low-income families.

Both provisions would have applied to families at 185% of the federal poverty level or lower.

After adopting the Clements amendment 32-0, senators adopted an underlying amendment containing the original committee proposal 36-0 and advanced LB1071 to final reading on a vote of 34-7.

Lawmakers then agreed to return LB1072 from final reading to consider a specific amendment. That bill, also introduced by Arch at the request of the governor, would provide for and change transfers from the Cash Reserve Fund and make a number of changes to other fund transfers, agency powers and duties and a variety of programs.

The amendment, offered by Clements and adopted 33-0, removed provisions in the bill that would have eliminated the Oct. 1 sunset date for extended eligibility for the Child Care Subsidy program.

Clements said the change would align the two budget adjustment bills and return the qualifying income for the child care subsidy to 130% of the federal poverty level when the current extended eligibility ends.

After adoption of the Clements amendment, LB1072 advanced to final reading 34-9.